The Trump administration’s seemingly sceptical attitude towards climate change was a key feature of the new United States President’s electoral campaign. However, even though the White House may not be prioritising environmental concerns, investors shouldn’t write-off pro-environment enterprises just yet.
In fact, even oil and gas companies are becoming greener. For one, Shell is increasing its investment in renewable energy to US$1 billion a year by 2030 as part of their contributions to the transition towards a low-carbon energy system.
And with large firms like this paving the way for renewable energy, the future of alternative energy stocks could grow. In fact, one renewable energy stock that has strengthened recently is Atlantica Yield, a portfolio of contracted renewable energy, power generation, electric transmission and water assets. According to investment websites, the “green” stock has been gaining for four consecutive years, and indications are that 2017 will be another good year for it.
Besides investing in outright green stocks, below are four other socially-conscious firms that could be worth investing in due to their sustainable approaches to commerce. How many businesses like these do you already have in your portfolio?
With a market share that until recently stood in excess of 90 per cent of the computer operating systems out there, Microsoft has huge influence. The company’s commitment to the environment includes charging a carbon fee internally, and since mid-2012, the company has been carbon-neutral. It is also claimed to be 100-per-cent powered by renewable energy, purchasing billions of kilowatt-hours a year from sustainable suppliers.
One of the world’s largest producers of toys and board games, Hasbro is constantly evaluating ways to minimise their impact on the environment. The company has made great strides in reducing its carbon footprint by developing innovative ways to reduce packaging, maximising the use of recycled materials, and being committed to sustainable sourcing. Notably, the company has completely eliminated PVC plastic from all toy and game packaging, switching to the more environmentally-friendly PET.
Since the 1960s, IBM has made a conscious effort to create sustainable business practices and manage resources in order to meet environmental challenges. For example, their Smarter Cities campaign took a comprehensive approach to helping cities run more efficiently and save resources, improving citizens’ lives and the business environment in the process.
Since the 1920s, Ecolab has been providing water, hygiene solutions, energy technologies and services to various industries around the world. Through partnerships with customers, non-governmental organisations and communities, Ecolab has helped to mitigate risks and reduce environmental impact. In 2014, the company also launched the Solutions for Life programme with the aim to help water conservation efforts around the world.
